Tax Requirement on Watercraft

Paper forms for boat-use-tax cannot be faxed or downloaded. These forms are generally obtained from a dealership or currency exchange. If you need to obtain the form prior to registering your boat, you can request copies to be mailed to you by calling the Illinois Department of Revenue's 24-hour Forms Order at 1-800-356-6302.

You can now file your Form RUT-75, Aircraft/Watercraft Use Tax Transaction Return with the Department of Revenue electronically using MyTax Illinois. The following is required:
 

• An individual must enter first and last name, social security number (SSN), and the Adjusted Gross Income (AGI) from the prior year IL-1040, Individual Income Tax Return. A business must enter the business name and federal identification number (FEIN). The information entered must match with IDOR's records to proceed with this filing method. 
• Copies of the purchase agreement or invoice, FAA bill of sale (aircraft), bill of sale (watercraft), proof of tax paid, and other documentation, if applicable.
• Electronic payment (in full) from a checking or savings account. This requires entry of the bank account type, account number, and routing number. 

After filing Form RUT-75 electronically, allow one business day for processing before applying for your aircraft or watercraft registration. 

Note: Filing electronically is the preferred method as it can reduce processing time. Payment requests submitted in MyTax Illinois may take three to five business days to process.

At the time you apply for an Illinois title or registration with the Illinois Department of Natural Resources for a watercraft you purchased or leased, you are required to submit either payment of tax or proof that no tax is due before your watercraft can be titled or registered.

The Illinois Department of Revenue is responsible for administering the collection of tax and providing the necessary tax forms. You must make separate payments for tax due and title and/or registration fees. Make your tax payment payable to the Illinois Department of Revenue and your payment for title fees payable to the Illinois Department of Natural Resources.

Note: Failing to title or register the item does not prevent the Department of Revenue from imposing the tax due on the purchase.

One of three forms must be used to pay tax or prove that no tax is due:

1. Form RUT-25, Use Tax Transaction Return, due no later than 30 days after the date the watercraft or snowmobile is brought into Illinois or the date of purchase from an out-of-state dealer or retailer, lending institution, or leasing company selling at retail.
2. Form RUT-75, Aircraft/Watercraft Use Tax Transaction Return, due no later than 30 days after acquiring the watercraft or the date the watercraft is brought into Illinois, whichever is later, if acquired by gift, transfer, donation, or non-retail purchase. "Watercraft" includes:
   
   1. Class 2, Class 3, and Class 4 Watercraft as defined in Section 3-2 of the Boat Registration and Safety Act; and
      
   2. personal watercraft as defined in Section 1-2 of the Boat Registration and Safety Act (jet skis, wave runners, etc.)
      
3. Form RUT ST-556, Sales Tax Transaction Return, due no later than 20 days after the date of delivery of the watercraft if purchased from an Illinois dealer or leasing company. Note: For More detailed information, refer to the instructions provided with each return.
   

You can obtain tax forms by

• requesting them from the Illinois Department of Natural Resources, where you are applying for title
• calling the IL Dept. of Revenue 24-hour Forms Order Line at 1-800-356-6302
• writing the IL Dept. of Revenue, PO Box 19010, Springfield IL 62794-9010

You can get tax help by

• calling the IL Dept. of Revenue Taxpayer Assistance Division at 1-800-732-8866 or 217-782-3336
• calling the IL Dept. of RevenueTDD (telecommunications device for the deaf) at 1-800-544-5304
• visiting the Illinois Department of Revenue website
• writing to Illinois Department of Revenue, PO Box 19044, Springfield IL 62794-9044